Does same benchmark in two mutual funds affect the portfolio ?

POSTED BY vijay ghadge ON July 24, 2014 10:39 pm ONE COMMENT


I have two SIP’s one in birla frontline equity (Rs.8000) and other in axis long term equity (elss)(Rs. 10000) .The benchmark of both funds is BSE 200.

Will that affect my portfolio in future?

One reply on this article “Does same benchmark in two mutual funds affect the portfolio ?”

  1. nsabhyankar says:

    Benchmark is a yardstick used to measure / assess a fund’s performance.
    In a class in school, the yard stick or the passing marks is the same for every student. Does that affect their performance?

    If 2 funds have the same benchmark, they are likely to be of the same type
    (Equity – Debt, Large, Mid or Small cap, Sectoral etc.)
    What you don’t want is too many funds of the same type.
    Having 2 funds with the same benchmark should not be a reason to worry.

    Also, if you are not familiar with the terms like benchmark, large cap, sectoral fund etc., I would suggest you consult your adviser or read up a bit yourself.

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